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Market Foundations + Forex Mechanics · The Basics

Lot sizes (standard, mini, micro, nano)

Match lot size to account size.

3 min read+25 XPLesson 4 of 110
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Market Foundations + Forex Mechanics

The Basics

Lesson 4 of 1104%
Lesson 4 of 110Market Foundations + Forex MechanicsThe Basics

Today's tiny win: make one idea click.

Match lot size to account size.

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Lot size is position size

A lot is the standard unit for position size in forex. A standard lot is 100,000 units of the base currency. A mini lot is 10,000. A micro lot is 1,000. A nano lot is 100. On many platforms, 1.00 lot means standard, 0.10 means mini, 0.01 means micro, and 0.001 means nano if the broker supports it.

On EUR/USD, a standard lot is about $10 per pip. A mini lot is about $1 per pip. A micro lot is about $0.10 per pip. A nano lot is about $0.01 per pip. That scaling is why lot size matters so much. Same chart, same entry, same stop - completely different risk.

For a $500 learning account, micro lots are the practical default. A 0.01 lot EUR/USD trade with a 10- to 20-pip stop risks roughly $1 to $2 before spread and slippage. That is small enough to let you take notes, review mistakes, and survive the learning curve.

Recap: standard is 100,000 units, mini is 10,000, micro is 1,000, and nano is 100. Pick lot size from account size and stop distance, not excitement.

Knowledge check

Answer before moving on.

0 / 3 answered

1. How many units are in one standard forex lot?

2. On EUR/USD, about how much is 1 pip worth at 0.01 lot?

3. Which lot size best matches a $500 beginner account using 10- to 20-pip stops?

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